FOR WIRE TRANSMISSION: 8:30 A.M. EST, TUESDAY, December 18, 2012
Sarah P. Scott: (202) 606-9286 BEA 12-57
U.S. International Transactions: Third Quarter 2012
Current Account
The U.S. current-account deficit—the combined balances on trade in goods and services,
income, and net unilateral current transfers—decreased to $107.5 billion (preliminary) in the
third quarter from $118.1 billion (revised) in the second quarter. The decrease in the current-
account deficit was more than accounted for by a decrease in the deficit on goods. Changes in
the other balances were relatively small.
Goods and services
The deficit on goods and services decreased to $124.5 billion in the third quarter from
$137.4 billion in the second.
Goods
The deficit on goods decreased to $173.9 billion in the third quarter from $185.7 billion
in the second.
Goods exports decreased to $393.4 billion from $394.1 billion. Decreases in three of the
six major end-use categories were mostly offset by increases in the other three categories. The
largest decrease was in industrial supplies and materials, which reflected decreases in nonferrous
metals, in chemicals, and in petroleum and products. The major end-use categories with the largest
increases were foods, feeds, and beverages and capital goods. The increase in foods, feeds, and
beverages was largely due to an increase in soybeans, and the increase in capital goods was more
than accounted for by an increase in completed civilian aircraft (Table 2a)
(www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=3).
Goods imports decreased to $567.3 billion from $579.9 billion. Four of the six major end-
use categories decreased. The largest decreases were in industrial supplies and materials and
in capital goods. The decrease in industrial supplies and materials was more than accounted for
by a decrease in petroleum and products. The decrease in capital goods was more than accounted
for by a decrease in machinery and equipment, which was mostly due to a decrease in computers,
peripherals, and parts. Changes in the other major categories were relatively small (Table 2a)
(www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=3).
Services
The surplus on services increased to $49.4 billion in the third quarter from $48.3 billion
in the second.
Services receipts increased to $159.1 billion from $157.6 billion. Five of the seven major
services categories increased. The largest increase was in other private services, which includes
items such as financial services, insurance services, and business, professional, and technical
services.
Services payments increased to $109.7 billion from $109.2 billion. Four of the seven major
services categories increased. The largest increase was in royalties and license fees, which
included payments for the rights to broadcast the Summer Olympic Games in July and August.
Income
The surplus on income decreased to $50.8 billion in the third quarter from $52.1 billion
in the second.
Investment income
Income receipts on U.S.-owned assets abroad increased to $182.9 billion from $182.5 billion.
The increase was more than accounted for by an increase in direct investment receipts. Other
private receipts, which consists of interest and dividends, decreased.
Income payments on foreign-owned assets in the United States increased to $130.2 billion
from $128.5 billion. The increase was more than accounted for by an increase in direct investment
payments. Other private payments decreased.
Compensation of employees
Receipts for compensation of U.S. residents paid by nonresidents remained at $1.5 billion
in the third quarter. Payments for compensation of foreign residents paid by U.S. residents
remained at $3.4 billion.
Unilateral current transfers
Net unilateral current transfers to foreigners were $33.8 billion in the third quarter, up
from $32.7 billion in the second. The increase was mostly due to an increase in the category of
private remittances and other transfers. Examples of these transactions include U.S. immigrants’
remittances to households abroad, taxes withheld on international transactions, U.S. charitable
donations to foreign residents, and transfers between U.S. and foreign insurance companies.
Capital Account
Net capital-account transactions are not available for the third quarter because source
data are not yet available. Net payments were $0.3 billion in the second quarter, which was
accounted for by capital transfers resulting from the forgiveness of debt owed to the U.S.
government by foreign governments.
Financial Account
Net financial inflows were $45.8 billion in the third quarter, down from $105.0 billion
in the second. Both U.S.-owned assets abroad and foreign-owned assets in the United States
increased in the third quarter after decreasing in the second. The slowing of net financial
inflows in the third quarter was primarily the result of a greater change in flows from the
second quarter for U.S.-owned assets abroad than for foreign-owned assets in the United States.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $229.8 billion in the third quarter after decreasing
$248.2 billion in the second.
U.S. claims on foreigners reported by U.S. banks and securities brokers increased $144.0
billion in the third quarter after decreasing $267.0 billion in the second. Examples of these
claims are U.S. banks’ deposits at foreign banks and U.S. banks’ loans to foreigners. The third-
quarter increase was due to increases in claims for both customers’ accounts and banks’ own
accounts (Table 10a)
(www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=23).
U.S. sales of foreign securities exceeded purchases (net sales) by $2.2 billion in the
third quarter after net sales of $6.5 billion in the second. Net sales of foreign stocks were
$2.1 billion, a shift from net purchases of $21.0 billion in the second quarter. Net sales of
foreign bonds were $0.1 billion, down from $27.5 billion in net sales in the second quarter
(Table 8a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=19).
U.S. direct investment abroad was $101.4 billion in the third quarter, up from $63.3 billion
in the second. The increase was mostly accounted for by a shift of intercompany debt investment
to net outflows in the third quarter from net inflows in the second quarter (Table 7a)
(www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=15).
U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns decreased $0.2
billion in the third quarter after decreasing $24.6 billion in the second.
U.S. official reserve assets increased $0.8 billion in the third quarter after increasing
$3.3 billion in the second. The third-quarter increase reflected an increase in the U.S. reserve
position in the International Monetary Fund (IMF) associated with U.S. loans to the IMF under
New Arrangements to Borrow.
U.S. government assets other than official reserve assets decreased $14.2 billion in the
third quarter after decreasing $16.7 billion in the second. The decreases in both quarters
reflected reductions of central bank liquidity swaps between the U.S. Federal Reserve System
and foreign central banks.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $282.0 billion in the third quarter
after decreasing $143.6 billion in the second.
U.S. liabilities to foreigners reported by U.S. banks and securities brokers, other than
those recorded under foreign official assets, increased $11.8 billion in the third quarter after
decreasing $214.4 billion in the second. Examples of these liabilities are deposits of foreign
residents at banks in the United States and loans by banks abroad to banks in the United States
(Table 11a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=25).
Foreign private purchases of U.S. Treasury securities exceeded sales by $47.9 billion in
the third quarter, an increase from second-quarter net purchases of $6.0 billion. The increase
from the second quarter reflected a shift from foreign net sales of U.S. Treasury bills to net
purchases (Table 8a and Table 11a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=19
and www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=25).
Foreign private purchases of U.S. securities other than U.S. Treasury securities exceeded
sales by $47.7 billion in the third quarter, a shift from foreign net sales of $43.1 billion in
the second. Net purchases of U.S. stocks were $37.4 billion, shifting from net sales of $8.5
billion in the second quarter. Net sales of U.S. corporate bonds decreased to $6.1 billion from
$38.2 billion in the second quarter. Net purchases of U.S. federally sponsored agency bonds
increased to $16.4 billion from $3.6 billion in the second quarter (Table 8a)
(www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=19).
Foreign direct investment in the United States was $34.2 billion in the third quarter,
down from $48.0 billion in the second. The decrease was more than accounted for by lower net
inflows of intercompany debt investment; equity investment was also lower. These decreases were
partly offset by an increase in reinvested earnings in the third quarter (Table 7a)
(www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=15).
U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns decreased
$6.0 billion in the third quarter after decreasing $27.0 billion in the second.
Foreign official assets in the United States increased $130.3 billion in the third quarter
after increasing $79.8 billion in the second. The third-quarter increase was mostly due to net
purchases of U.S. Treasury securities.
Net shipments of U.S. currency to foreign countries were $16.2 billion in the third quarter,
up from $7.1 billion in the second.
Financial derivatives
Net outflows of financial derivatives were $6.4 billion in the third quarter after net
inflows of $0.5 billion in the second.
The statistical discrepancy—the amount that balances the sum of the recorded credits and
debits across all the accounts in the international transactions accounts—was $61.7 billion in
the third quarter compared with $13.4 billion in the second.
In the third quarter, the U.S. dollar appreciated 0.1 percent on a trade-weighted quarterly
average basis against a group of 7 major currencies. In the second quarter, the U.S. dollar
appreciated 1.5 percent on the same basis. Exchange rate data are based on Federal Reserve
Statistical Release H.10.
Revisions
The second-quarter 2012 international transactions are revised from previously published
statistics. The current-account deficit was revised upward to $118.1 billion from $117.4 billion.
The goods deficit was revised downward to $185.7 billion from $185.8 billion. The services surplus
was revised upward to $48.3 billion from $46.5 billion. The income surplus was revised downward
to $52.1 billion from $55.5 billion. Net outflows of unilateral current transfers were revised
downward to $32.7 billion from $33.6 billion. Net financial inflows were revised upward to $105.0
billion from $88.5 billion.
* * *
Release dates in 2013:
Fourth quarter and year 2012....................................March 14, 2013 (Thursday)
First quarter 2013.................................................June 14, 2013 (Friday)
Second quarter 2013.........................................September 19, 2013 (Thursday)
Third quarter 2013............................................December 17, 2013 (Tuesday)
* * *
BEA’s national, international, regional, and industry statistics; the SURVEY OF CURRENT
BUSINESS; and BEA news releases are available without charge on BEA’s Web site at (www.bea.gov).
At the site, you can also subscribe to receive free e-mail summaries of BEA releases and
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________________
NOTE: This news release is available on BEA’s Web site (www.bea.gov) along with Highlights
(www.bea.gov/newsreleases/international/transactions/2012/pdf/trans312_fax.pdf)
related to this release, the latest detailed statistics (www.bea.gov/iTable/index_ita.cfm) for
U.S. international transactions, and a description of the estimation methods
(www.bea.gov/methodologies/index.htm#international_meth) used to compile them. The third-quarter
statistics in this release are preliminary and will be revised on March 14, 2013. All links in
the text of this release—including archived versions of this release—refer to the latest available
revised statistics.
December 18, 2012
Table 1. U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]
2011 2012 Change:
(Credits +, debits -)/1/ 2011 2012:II to
I II III IV I II r III p 2012:III
Current account
1 Exports of goods and services and income receipts.............................................. 2,847,988 689,593 713,499 724,800 720,095 728,724 735,670 736,935 1,265
2 Exports of goods and services.............................................................. 2,103,367 508,811 524,000 537,351 533,204 544,016 551,668 552,519 851
3 Goods, balance of payments basis....................................................... 1,497,406 360,917 372,160 382,161 382,167 388,523 394,114 393,395 -719
4 Services............................................................................... 605,961 147,894 151,839 155,190 151,037 155,493 157,554 159,124 1,570
5 Transfers under U.S. military agency sales contracts............................... 17,946 4,122 4,545 4,664 4,615 4,406 4,267 4,644 377
6 Travel............................................................................. 116,115 27,407 29,260 30,194 29,254 30,900 32,282 32,572 290
7 Passenger fares.................................................................... 36,631 8,374 9,080 9,889 9,287 9,734 10,189 10,003 -186
8 Other transportation............................................................... 43,064 10,520 10,760 10,956 10,827 10,863 10,948 10,730 -218
9 Royalties and license fees......................................................... 120,836 29,405 30,343 31,055 30,033 30,429 29,994 30,419 425
10 Other private services............................................................. 270,193 67,749 67,585 68,123 66,736 68,833 69,560 70,426 866
11 U.S. government miscellaneous services............................................. 1,176 317 267 309 284 327 314 330 16
12 Income receipts............................................................................ 744,621 180,781 189,499 187,449 186,891 184,708 184,002 184,416 414
13 Income receipts on U.S.-owned assets abroad............................................ 738,810 179,328 188,047 185,994 185,441 183,230 182,520 182,921 401
14 Direct investment receipts......................................................... 480,238 118,621 123,417 119,106 119,094 116,321 112,140 113,564 1,424
15 Other private receipts............................................................. 256,649 60,262 64,123 66,361 65,903 66,146 69,893 68,865 -1,028
16 U.S. government receipts........................................................... 1,923 445 506 527 444 763 488 493 5
17 Compensation of employees.............................................................. 5,811 1,453 1,452 1,455 1,450 1,479 1,482 1,495 13
18 Imports of goods and services and income payments.............................................. -3,180,861 -774,367 -798,839 -801,143 -806,512 -829,657 -821,039 -810,603 10,436
19 Imports of goods and services.............................................................. -2,663,247 -646,036 -665,549 -672,173 -679,489 -692,380 -689,090 -677,007 12,083
20 Goods, balance of payments basis....................................................... -2,235,819 -542,276 -559,344 -562,778 -571,421 -582,821 -579,850 -567,294 12,556
21 Services............................................................................... -427,428 -103,761 -106,205 -109,395 -108,068 -109,559 -109,240 -109,713 -473
22 Direct defense expenditures........................................................ -29,510 -7,570 -7,545 -7,343 -7,052 -6,838 -6,726 -6,508 218
23 Travel............................................................................. -78,651 -19,257 -19,628 -19,895 -19,871 -21,228 -21,387 -20,737 650
24 Passenger fares.................................................................... -31,109 -7,542 -7,698 -7,946 -7,923 -8,936 -8,821 -8,421 400
25 Other transportation............................................................... -54,711 -13,439 -13,736 -13,767 -13,769 -13,716 -13,808 -13,841 -33
26 Royalties and license fees......................................................... -36,620 -8,921 -8,543 -9,503 -9,652 -9,859 -10,083 -11,249 -1,166
27 Other private services............................................................. -191,973 -45,825 -47,916 -49,656 -48,576 -47,866 -47,311 -47,807 -496
28 U.S. government miscellaneous services............................................. -4,854 -1,207 -1,138 -1,284 -1,225 -1,115 -1,104 -1,149 -45
29 Income payments............................................................................ -517,614 -128,330 -133,290 -128,971 -127,022 -137,277 -131,949 -133,596 -1,647
30 Income payments on foreign-owned assets in the United States........................... -503,796 -124,863 -129,835 -125,508 -123,590 -133,885 -128,543 -130,177 -1,634
31 Direct investment payments......................................................... -158,559 -39,891 -43,855 -38,261 -36,552 -45,585 -39,234 -42,027 -2,793
32 Other private payments............................................................. -212,506 -51,501 -53,193 -54,157 -53,655 -55,396 -56,568 -55,576 992
33 U.S. government payments........................................................... -132,731 -33,471 -32,787 -33,090 -33,383 -32,904 -32,741 -32,574 167
34 Compensation of employees.................................................................. -13,817 -3,467 -3,455 -3,463 -3,433 -3,392 -3,406 -3,419 -13
35 Unilateral current transfers, net.............................................................. -133,053 -35,223 -33,777 -31,815 -32,240 -32,692 -32,743 -33,839 -1,096
36 U.S. government grants..................................................................... -47,350 -11,136 -13,486 -11,176 -11,551 -11,910 -11,471 -11,698 -227
37 U.S. government pensions and other transfers............................................... -8,947 -2,202 -2,227 -2,250 -2,269 -2,541 -2,574 -2,606 -32
38 Private remittances and other transfers.................................................... -76,756 -21,884 -18,064 -18,389 -18,419 -18,241 -18,698 -19,535 -837
December 18, 2012
Table 1. U.S. International Transactions (Continued)
[Millions of dollars, quarters seasonally adjusted]
2011 2012 Change:
(Credits +, debits -)/1/ 2011 2012:II to
I II III IV I II r III p 2012:III
Capital account
39 Capital account transactions, net.............................................................. -1,212 -29 -829 -300 -55 -1 -291 n.a. n.a.
Financial account
40 U.S.-owned assets abroad, excluding financial derivatives
(increase/financial outflow (-))................................................................ -483,653 -372,944 7,418 -91,896 -26,231 106,549 248,186 -229,774 -477,960
41 U.S. official reserve assets............................................................... -15,877 -3,619 -6,267 -4,079 -1,912 -1,233 -3,289 -833 2,456
42 Gold................................................................................... 0 0 0 0 0 0 0 0 0
43 Special drawing rights................................................................. 1,752 1,961 -159 -27 -23 -11 -10 -10 0
44 Reserve position in the International Monetary Fund.................................... -18,079 -6,428 -5,974 -3,909 -1,768 -1,078 -3,179 -744 2,435
45 Foreign currencies..................................................................... 450 848 -134 -143 -121 -144 -100 -79 21
46 U.S. government assets, other than official reserve assets................................. -103,666 -547 -1,358 -1,137 -100,624 51,076 16,650 14,151 -2,499
47 U.S. credits and other long-term assets................................................ -7,307 -1,307 -2,337 -1,396 -2,267 -2,631 -2,538 -1,786 752
48 Repayments on U.S. credits and other long-term assets.................................. 3,333 610 1,259 812 653 352 680 466 -214
49 U.S. foreign currency holdings and U.S. short-term assets.............................. -99,692 150 -279 -553 -99,010 53,356 18,508 15,471 -3,037
50 U.S. private assets........................................................................ -364,110 -368,778 15,042 -86,679 76,305 56,706 234,826 -243,092 -477,918
51 Direct investment...................................................................... -419,332 -104,404 -133,397 -70,323 -111,208 -116,094 -63,347 -101,434 -38,087
52 Foreign securities..................................................................... -146,797 -85,472 -57,195 -40,110 35,980 3,604 6,519 2,166 -4,353
53 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns............ -11,608 -92,203 6,147 9,326 65,122 -49,183 24,608 203 -24,405
54 U.S. claims reported by U.S. banks and securities brokers.............................. 213,627 -86,699 199,487 14,428 86,411 218,379 267,046 -144,027 -411,073
55 Foreign-owned assets in the United States, excluding financial derivatives
(increase/financial inflow (+))................................................................. 1,000,990 578,972 98,554 266,397 57,067 59,564 -143,607 281,960 425,567
56 Foreign official assets in the United States............................................... 211,826 72,974 121,822 19,889 -2,859 69,711 79,772 130,281 50,509
57 U.S. government securities............................................................. 158,735 67,719 97,184 11,249 -17,417 85,431 71,093 115,425 44,332
58 U.S. Treasury securities........................................................... 171,179 56,274 104,363 28,115 -17,573 85,068 85,239 104,914 19,675
59 Other.............................................................................. -12,444 11,445 -7,179 -16,866 156 363 -14,146 10,511 24,657
60 Other U.S. government liabilities...................................................... 9,063 2,714 2,236 2,287 1,826 2,833 2,661 1,382 -1,279
61 U.S. liabilities reported by U.S. banks and securities brokers......................... 30,010 -3,090 15,764 5,121 12,215 -19,305 2,404 7,447 5,043
62 Other foreign official assets.......................................................... 14,018 5,631 6,638 1,232 517 752 3,614 6,027 2,413
63 Other foreign assets in the United States.................................................. 789,164 505,998 -23,268 246,508 59,926 -10,147 -223,379 151,679 375,058
64 Direct investment...................................................................... 233,988 33,365 61,281 63,222 76,120 22,202 48,018 34,204 -13,814
65 U.S. Treasury securities............................................................... 240,878 55,054 -17,613 120,918 82,519 43,834 5,992 47,882 41,890
66 U.S. securities other than U.S. Treasury securities.................................... -56,442 4,338 -5,108 -20,396 -35,276 3,654 -43,065 47,683 90,748
67 U.S. currency.......................................................................... 54,996 12,576 13,989 9,614 18,817 18,057 7,116 16,156 9,040
68 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns....... 6,567 40,688 25,538 -19,670 -39,989 24,212 -27,008 -6,028 20,980
69 U.S. liabilities reported by U.S. banks and securities brokers......................... 309,177 359,977 -101,355 92,820 -42,265 -122,106 -214,432 11,782 226,214
70 Financial derivatives, net..................................................................... 39,010 2,927 7,419 -3,949 32,613 -1,396 464 -6,406 -6,870
71 Statistical discrepancy (lines 1, 18, 35, 39, 40, 55, and 70 with sign reversed)............... -89,208 -88,930 6,555 -62,094 55,263 -31,092 13,360 /2/61,727 /3/48,367
Memoranda:
72 Balance on goods (lines 3 and 20).............................................................. -738,413 -181,358 -187,184 -180,617 -189,254 -194,298 -185,736 -173,899 11,837
73 Balance on services (lines 4 and 21)........................................................... 178,533 44,133 45,634 45,795 42,969 45,934 48,314 49,411 1,097
74 Balance on goods and services (lines 2 and 19)................................................. -559,880 -137,225 -141,549 -134,822 -146,286 -148,364 -137,423 -124,488 12,935
75 Balance on income (lines 12 and 29)............................................................ 227,007 52,451 56,209 58,478 59,869 47,431 52,054 50,820 -1,234
76 Unilateral current transfers, net (line 35).................................................... -133,053 -35,223 -33,777 -31,815 -32,240 -32,692 -32,743 -33,839 -1,096
77 Balance on current account (lines 1, 18, and 35 or lines 74, 75, and 76)....................... -465,926 -119,997 -119,117 -108,158 -118,656 -133,624 -118,112 -107,507 10,605
78 Net financial flows (lines 40, 55, and 70)..................................................... 556,347 208,955 113,391 170,552 63,449 164,717 105,043 45,780 -59,263
p Preliminary r Revised n.a. Not available
1 Credits, +: Exports of goods and services and income receipts; unilateral current transfers to the United States; capital account receipts; financial inflows—increase in foreign-owned assets (U.S. liabilities)
or decrease in U.S.-owned assets (U.S. claims). Debits, –: Imports of goods and services and income payments; unilateral current transfers to foreigners; capital account payments; financial outflows—decrease
in foreign-owned assets (U.S. liabilities) or increase in U.S.-owned assets (U.S. claims).
2 Calculated excluding capital account transactions, net (line 39).
3 The change shown here is calculated as the change from the prior period, not as the sum of changes in the above items.
Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis